Welcome to the World of Micro-Loans - AFA

people alone in the UK who do not have a bank
account or access to credit. Worldwide, the total
volume in this sector is around 250 billion dollars.
The model has already swayed many of the big
Bank and Morgan Stanley set up investment
funds. Indian banking giants acted accordingly
and India became the biggest market for mini
able to collect 350 million dollars of new assets
growing with high speed, thus quality standards
-
growing on a sustainable basis. The model only
does work in areas where the borrowers have
the possibility to build up small businesses. It is
loan-takers may escape poverty within a period
Micro investments reach glass ceiling
for further growth. Even though, Nusrat´s investment
in a cow, three ducks, some chickens and
the vegetables in front of the house may not grow
into a big farm, she and her family were able to
take their lives in their own hands. Their household
was stabilized and their children were able
to go to school regularly.
A microloan may be a tremendous tool in the
hands of the poor. Indeed, it might need stron-
dividual
success stories demonstrate that micro
credits, granted in observance of proper quality
-
against poverty.
Many suppliers are using schemes not meant
ing
the Grameen model of only serving women
in self-help groups, aiding those seeking start-up
site. It became common for borrowers to pay
back a loan by taking out more credit from a different
supplier. This led to an excessive debt overload
for some borrowers. Especially, in South-East
Asia, where microcredits are widely spread, calls
uniform interest rates. In some countries, many
poor have to pay up to 100 per cent, and the average
rate lies around 34 percent.
that the rise in income and higher levels of educa-
Women meeting at the Grameen Bank
GLOBAL VIEW 1/2011